Tech Talk for Friday June 26th 2020

U.S. equity index futures were higher this morning. S&P 500 futures were up 4 points in pre-opening trade.

Index futures moved slightly higher following release of economic news at 8:30 AM EDT. Consensus for May Personal Income was a drop of 6.0% versus a gain of 10.5% in April. Actual was a drop of 4.2%. Consensus for May Personal Spending was an increase of 9.3% versus a drop of 12.6% in April. Actual was an increase of 8.2%

Amazon gained $18.21 to $2,772.79 after Deutsche Bank and SunTrust RH raised their target price on the stock.

eBay added $1.30 to $50.70 after Deutsche Bank upgraded the stock from Hold to Buy. Target price was raised from $42 to $57.

Big Lots gained $3.75 to $37.60 after the company noted that quarter to quarter sales were ahead of expectations.

McCormick improved $0.46 to $179.00 after Stifel Nicolaus raised its target price from $155 to $170.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2020/06/25/stock-market-outlook-for-june-26-2020/

Note seasonality chart on U.S. Durable Goods Orders

Technical Notes

Accenture (ACN), an S&P 100 stock moved above $211.32 and $215.42 to an all-time high extending an intermediate uptrend.

Duke Energy (DUK), an S&P 100 stock moved below $79.12 setting an intermediate downtrend.

U.S. Natural Gas Prices touched a 20 + year low on high and rising inventories for this time of year.

Note: The shaded area indicates the range between the historical minimum and maximum values for the weekly series from 2015 through 2019. The dashed vertical lines indicate current and year-ago weekly periods.

Nike (NKE), a Dow Jones Industrial Average stock dropped $3.79 to $97.61 following the close after reporting lower than consensus fiscal fourth quarter revenues and earnings.

Major U.S. banks stocks and related ETFs initially moved lower following the close after stress tests by the Federal Reserve found that some banks could by stressed by the pandemic. The Federal Reserve announced a cap on dividends and a suspension of share buy backs for the third quarter of 2020.

Facebook (FB), a NASDAQ 100 stock dropped 2.5% after the close after Verizon announced that the company is pulling out its advertising on Facebook and Instagram.

A technical analyst on CNBC's Fast Money last night reminded us of a famous technical analyst phrase, "The Bigger the Base, the Bigger the Move on a Breakout". His example was the recent breakout by the Biotech sector and its related ETFs above a five year trading range.

Trader's Corner

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for June 25th 2020

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Seasonal/Technical Commodities Trends for June 25th 2020

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for June 25th 2020

Green: Increase from previous day

Red: Decrease from previous day

S&P 500 Momentum Barometer

The Barometer added 6.61 to 64.13 yesterday. It returned to intermediate overbought from intermediate neutral on a recovery above 60.00. Trend remains down.

TSX Momentum Barometer

The Barometer added 4.30 to 72.77 yesterday. It remains intermediate overbought and trending down.

Disclaimer: Seasonality and technical ratings offered in this report and at

www.equityclock.com are for information only. They should not be considered as advice to purchase or to sell mentioned securities. Data offered in this report is believed to be accurate, but is not guaranteed

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